A Game Model of Tradable Emission Permits under Conditions of Duopoly
寡头垄断条件下的排污权交易博弈模型

A game model of tradable emission permits under conditions of duopoly is established based on the Cournot game model. The equilibrium is analyzed between firms which have different production cost and pollution controlling cost while given different amount of emission permits by governments. It is proved that in some special cases tradable emission permits will not result in much advantage, but equilibrium with low output capacity and high price. Besides, it may result in higher production of firms whose cost is higher, and lower productions of firms whose cost is lower.